Imputed Income

A tax on the values of certain company-provided benefits that the IRS requires you to report as taxable wages.

If your basic life insurance coverage exceeds $50,000, as well as basic spouse/domestic partner life coverage exceeds $2,000 and basic child life coverage exceeds $2,000, then imputed income will apply on your paychecks.

For domestic partner coverage, imputed income is calculated based on the difference between the value of the benefit premium (the company’s cost) and the employee’s shared cost, paid on an after-tax basis.

Use this tax table to calculate imputed income for Basic Life Insurance benefits:

Age Imputed Income (based on $1,000 coverage per month)
< 25 $.05
25–29 $.06
30–34 $.08
35–39 $.09
40–44 $.10
45–49 $.15
50–54 $.23
55–59 $.43
60–64 $.66
65–69 $1.27
70+ $2.06